1. Earned Income (Work Wages or Self-Employment)

The biggest factor affecting SSDI benefits is earned income — money you receive from working, whether as an employee or through self-employment. The Social Security Administration (SSA) uses a threshold called Substantial Gainful Activity (SGA) to determine whether your work counts as “substantial.”

• In 2025, the SGA limit is $1,550 per month for non-blind individuals and $2,590 per month for those who are blind.

If you consistently earn above these limits, the SSA may decide that you are no longer considered “disabled,” which could stop your SSDI payments.

However, you can test your ability to work without immediately losing benefits through a Trial Work Period (TWP).

• During the TWP, you can earn any amount for 9 months while still receiving full SSDI payments, as long as you report your income to the SSA.

2. Unearned Income (Does Not Directly Reduce SSDI)

Unlike SSI, most unearned income — such as investment income, spousal income, child support, unemployment benefits, or pensions — does not directly reduce SSDI benefits. That’s because SSDI is based on your past work credits, not current financial resources. However, these income sources may:

• Affect taxable income, since SSDI benefits can become taxable if your total income exceeds certain levels.
• Influence Medicaid or Supplemental Security Income (SSI) eligibility if you receive both.

3. Workers’ Compensation and Public Disability Benefits

If you receive workers’ compensation or other public disability benefits, they can reduce your SSDI payments. The SSA limits the total combined amount you can receive from these programs to 80% of your average current earnings before your disability began.

Examples include:

• Kentucky workers’ compensation
• State or local government disability pensions (not based on Social Security work)

If your total combined benefits exceed the limit, your SSDI payment will be reduced accordingly.

4. VA Disability Benefits

If you’re a veteran receiving VA disability compensation, good news — this does not affect your SSDI.
The VA and SSA are separate federal programs with different eligibility rules. You can receive both VA and SSDI benefits at the same time with no reduction in payment.

5. Retirement Benefits

If you begin receiving Social Security retirement benefits, your SSDI will typically convert to retirement benefits once you reach full retirement age (usually between 66 and 67).

This transition doesn’t usually change your monthly payment amount, but if you receive early retirement benefits, those can reduce your total SSDI/retirement combined benefit.

6. Short-Term or Long-Term Disability Insurance

If you have private disability insurance through your employer or an individual policy, your SSDI benefit amount remains the same. However, some private insurance policies offset payments based on how much you receive from SSDI — meaning your insurance benefit may go down, not your SSDI.

7. Self-Employment and Business Ownership

If you own a small business in Kentucky or are self-employed, the SSA will review how much work you’re actually doing, not just your profits. Even if your income is below the SGA level, performing substantial business activity could still lead the SSA to question whether you are “disabled.”



Keep detailed records of your work hours, expenses, and roles to avoid misunderstandings.